Income elasticity of demand 3.0 / 5 based on 1 rating ? EconomicsMacroeconomic indicatorsASOCR Created by: JadeCreated on: 21-11-12 17:09 What is income elasticity of demand? The responsiveness of demand following a change in income 1 of 10 YED is measured by which formula? % change in quantity demanded/% change in income 2 of 10 YED is less than 1. Demand is? Income inelastic 3 of 10 YED is greater than 1. Demand is? Income elastic 4 of 10 Normal goods have a ______ income elasticity of demand. Positive 5 of 10 Normal necessities, YED is? Between 0 and +1 - income inelastic 6 of 10 Luxury normal goods and services, YED is? Greater than +1 - income elastic 7 of 10 Normal goods have a positive YED, which means? As real disposable income increases, demand for these products will also increase. 8 of 10 What are inferior goods? Goods for which an increase in income leads to a fall in demand 9 of 10 Give an example of an inferior good? Own-label value products 10 of 10
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